Firm weighted average cost of capital

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BlockOut Co. has 78,543 bonds outstanding that are selling at par value. The bonds yield 8.2 percent. The company also has 5.2 million shares of common stock outstanding. The stock has a beta of 1.15 and sells for $43.3 a share. The U.S. Treasury bill is yielding 4.5 percent and the market risk premium is 8.8 percent. Blackout's tax rate is 34 percent. What is the firm's weighted average cost of capital? (Enter answer in percents.)

Reference no: EM132050148

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